Premier Panyaza Lesufi has distanced himself from the controversial payout to former Gauteng health department chief financial officer Lerato Madyo, insisting his office played no role in the settlement and that disciplinary proceedings against her had begun before he became premier.
The denial follows explosive claims by the Democratic Alliance during a media briefing on Wednesday, where the party alleged that Madyo quietly received a financial settlement after her suspension.
Madyo, who is now believed to be using the name Daniella Molapo, resigned in August 2024 after being suspended in connection with the corruption scandal at Tembisa Hospital.
She had been under scrutiny for allegedly failing to act on warnings from slain whistle-blower Babita Deokaran, who uncovered more than R850 million in suspicious payments at the hospital before she was assassinated in 2021.
During the briefing, the DA’s Gauteng shadow health MEC, Jack Bloom, said Madyo did not simply resign but walked away with a settlement from the Gauteng Department of Health.
Bloom said the revelation emerged in a written reply from Gauteng Health MEC Nomantu Nkomo-Ralehoko to questions he submitted in the legislature.
According to Bloom, the department and Madyo signed a settlement agreement containing a strict confidentiality clause preventing disclosure of the financial terms.
He said Madyo earned about R3 million while suspended for two years as the department delayed her disciplinary hearing on 13 misconduct charges.
The DA has since opened a criminal case against Madyo, accusing her of breaching anti-corruption and public finance laws, and is demanding that Lesufi and Nkomo-Ralehoko account for the secret settlement and make the agreement public.
But Lesufi rejected any suggestion that he approved the deal.
“The Premier does not have the legal authority to appoint or dismiss chief financial officers at that level. That responsibility rests with the executive authority of the department,” he said.
Lesufi said his office was not involved in negotiations that led to the settlement and was only informed after the agreement had already been concluded.
He added that the department later requested retrospective approval, which he refused because his office had not been consulted beforehand.
Lesufi said an independent legal firm has now been appointed to investigate whether the agreement was properly handled and to advise on possible further action.
“We will not hide any form of wrongdoing, especially on matters related to the tragic loss of Babita Deokaran,” he said.
Responding to the controversy, the Gauteng Department of Health said the settlement complied with labour regulations and was not a “golden handshake.”
Department spokesperson Kealeboga Mohajane said disciplinary proceedings had been initiated but the process faced evidentiary challenges, prompting both parties to agree to terminate the employment relationship.
She added that any pension benefits fall under the rules of the Government Employees Pension Fund.
The Star